Audit firms may have a standardized audit programs for auditing long-lived assets but auditors must still customize the audit program based on the assement of the risk of material misstatement. Why/how?

Q: Describe the purpose and give examples of audit procedures in the search for unrecorded liabilities.

A: The search of unrecorded liabilities is the set of procedures designed to yield audit evidence of…

Q: Based on an assessment of audit risk, the auditors are concerned with the following two risks:…

A: Introduction: Audit risk is the possibility that an auditor would overlook faults or commit fraud…

Q: tangible fixed assets

A: The audit of tangible fixed assets is done to verify the authenticity, existence, accuracy and…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: Firstly let us understand what are risk assessment procedures. Risk assessment is the assessment of…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: The procedure includes all this steps   Recalculate (foot) summary schedules   -Reconcile summary…

Q: For each of the following misstatements in property, plant, andequipment accounts, state an internal…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Substantive analytical procedures are performed by auditor: To identify and assess detection risk To…

A: Auditor is the person who is responsible for performing audit work. Audit means checking and…

Q: In considering materiality for planning purposes, an auditor believes that misstatements aggregating…

A: It would be appropriate to design auditing procedures that would be expected to detect misstatements…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Examine the information enunciated below carefully and identify the impact of increase in the…

A: The first step in conducting audit is the assessment of audit risk inherent to the business which…

Q: The auditor selects a sample of asset disposals and examines the sales documentation evidencing…

A: An audit is one of the important processes that is used for financial statements. Financial…

Q: ems of equipment from the accounting records and then attempt to locate them during the plant tour.…

A: Auditor refers to an individual whose job is to identify and check all the records of a company.

Q: Why do auditors typically test internal controls at an interim audit date? O more effective to test…

A: Interim testing is the testing performed by a company typically at some point close to year-end. A…

Q: Uncorrected Misstatements and Performance Materiality. During the conduct of an audit, auditors may…

A:

Q: My question is on auditing where I want to know whether the audit evidence is sufficient and…

A: Answer: There is one standards on audit for audit evidences which describes that audit evidence…

Q: In which of the following circumstances would an auditor expect to find that an entity had…

A: Definition: Audit: Audit is the process of verification of the compliance of the financial…

Q: An internal auditing department has a project under way to determine whether it can go to electronic…

A: An audit of financial statements is an examination conducted by an independent auditor on the…

Q: An auditor discovered the following matters while performing tests of controls: 2.A purchase of raw…

A: a)Control - Enforcing clear record-keeping and documentation procedures.

Q: An auditor must identify the relevant assertions about each significant financial statement account…

A: a.

Q: not a procedure used by an auditor in searching for unrecorded disposals of long-lived assets?

A: Option a is wrong because the examination of property tax records provides information on tax on…

Q: ZZZ best fraud case, auditors obtained third party confirmation to support the contract, reviewed…

A: Audit procedure: Auditor applies procedures to perform audit engagement. These procedures include…

Q: Explain how ratio analysis and industry comparisons can be useful to the auditor identifying…

A: Ratio Analysis is a tool by which an auditor can examine the data for the two financial years and…

Q: Please access PCAOB Auditing Standard No. 12 "Identifying and Assessing Risks of Material…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: Which of the following controls will most likely justify a reduced assessed level ofcontrol risk for…

A: Answer:   Option 2.

Q: To assess the risks of material misstatement with respect to Owners’ Equity Accounts, please…

A: The main thing for  implementing controls  are to avoid frauds in the organisation. Risk in auditing…

Q: Which of the following best describes why auditors audit leased assets in conjunction with the audit…

A: The question is related to the audit of leased assets. Lease is an agreement between two parties…

Q: Assume that the client’s internal controls over the recordingand classifying of fixed asset…

A: Fixed asset additions can be examine through supporting documents i.e. invoices and can conduct…

Q: The company you audited recently did not have any knowledge in asset management and therefore does…

A: Assets Management Basically, in any form of organisation proper management of investment which are…

Q: s and obligation assertion when auditing payables and contrast this with the audit of asset…

A: An auditor is a person or a company hired by a company to conduct an audit. A person must be…

Q: Applying substantive tests to the details of asset and liability accounts as of an interim date,…

A: SOLUTION- Substantive testing is an audit procedure that examines the financial statements and…

Q: Which of the following is not a scope of internal auditors? Efficient Use of Resources Should work…

A: Internal auditors are the professionals appointed by the businesses to ensure the operational…

Q: Which of the following is not one of the tasks undertaken during the phase use of t of the audit? A)…

A: Auditing is an examination of financial data of any entity with a view to express an opinion thereon…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: The main objective of the Audit is to take reasonable assurance about the True and fair view of…

Q: The internal audit can pinpoint the person responsible for carelessness. This will help to:…

A: Audit is the process of checking and verifying the authenticity and transparency of the books of…

Q: Which of the following controls will most likely justify a reduced assessed level ofcontrol risk for…

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

Q: A. The risk the planned further audit procedures will not be able to detect misstatement should be…

A: Audit planning refers to the process of creating a strategy and the desired approach suitable needs…

Q: Ordinarily, it would be appropriate to design audit procedures that would be expected to detect…

A:

Q: Assuming that the operating effectiveness of each of the above procedures is found to be inadequate,…

A: Auditor is the independent person who is responsible to check the adequacy and accuracy of the…

Q: explain. If, after obtaining an initial understanding of a client's internal control, the auditor…

A: Audit refers to the inspection of the company records or the financial information in order to check…

Q: How will this situation affect the evidence you should accumulate in auditing fixed assets as…

A: Fixed asset additions can be examine through supporting documents i.e. invoices and can conduct…

Q: auditor is able to rely on previous audits' assessments

A: In some cases, auditor may have to place reliance on the work done by the previous auditor or other…

Q: Auditors identify and assess the risk of material misstatement at these two levels Select an answer…

A: According to SA 315, Auditor should assess about the business environment and the entity controls of…

Q: During its preparatory conversation concerning fraud risks, what factors should the audit team take…

A: Fraud risk refers to management's purposeful misrepresentation of financial accounts to earn…

Q: In performing risk assessment procedures for property, plant and equipment, an auditor may inquire…

A: Risk assessment procedures is also written as RAP, is the audit procedures performed by auditor for…

Q: If an auditor tours a production facility, which of the misstatements of questionable  practices is…

A: In the Production Facility, the auditor would most likely detect that necessary facility maintenance…

Q: Give examples and practice on the situation of auditing fixed assets at the client as follows (in…

A: First we should what is auditing fixed assets: The  fixed asset audit procedures are for those…

Q: How do you assess the risk of material misstatement associated with the audit of inventories?

A: Answer: When auditor performs the audit procedures, there is always the risk of misstatement and…